Life360 Inc. (ASX: 360) and Xero Ltd (ASX: XRO) are already much larger businesses than they were a decade ago, and I still see plenty of room for both to keep growing.
Life360 is expanding its global audience and building more services around family safety. Xero is becoming more deeply embedded in how small businesses manage their finances.
So, would I buy either or both ASX tech stocks in August?
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Life360 shares
Life360 has grown from a location-sharing app into a broader family safety and connection platform.
Its services cover areas such as crash detection, driver reports, emergency dispatch, and tracking for people, pets, and possessions. This gives the company several ways to deepen its relationship with families as their needs change.
The platform had approximately 97.8 million monthly active users at the end of March, representing growth of 17% over the year. This is a large number but I believe there is considerable room to expand across the more than 180 countries in which Life360 operates.
For example, international monthly active users grew 20% to 46 million during the most recent quarter. This is still smaller than its US monthly active users.
Life360 is also becoming better at turning its reach into annual recurring revenue. Paying circles increased 27% to 3 million during the same period, supporting subscription revenue growth of 32%.
Advertising provides another growth avenue. Life360 generated $19.7 million of advertising revenue in the first quarter, and the Nativo acquisition has expanded the company's ability to connect its large audience with advertisers across a wider network.
But it isn't stopping there. Management is also developing products for families with pets and ageing parents. I think this broader vision could make Life360 relevant to more households and for longer periods of their lives.
The investment case depends on Life360 maintaining user trust and executing its international expansion carefully. But I think its growing audience, improving subscription monetisation, and emerging advertising business make the shares attractive for the long term.
Xero shares
Xero has developed into a major global cloud accounting platform, reaching 5 million customers.
I believe the ASX tech stock can continue growing by winning more small business customers and offering each one a broader range of financial tools.
Its platform brings together accounting, payroll, payments, bills, tax, and cash flow information. These recurring tasks can make the software deeply embedded in a customer's daily operations.
Xero's customer base grew 11% in FY26, helping organic revenue increase by 21%. The company earned more from each customer as it added product value and increased payments adoption. I think this shows how growth can come from both a larger audience and deeper use of the platform.
The United States could be particularly important. Xero's organic US revenue grew 30% in FY26, while the acquisition of Melio has added bill payment capabilities that can strengthen its offering in this large market.
Payments, artificial intelligence, and higher-value plans could all increase the amount of work completed inside Xero. I think the recent launch of Xero Ultra in Australia also shows how the business can support customers as they become larger and more complex.
I believe the investment case for Xero depends on it integrating Melio well and competing effectively in the United States. But I think the company has the product breadth and established scale to pursue a much larger global customer base.
Foolish takeaway
In my opinion, the most appealing growth shares can expand both their audience and the value created from each customer. Life360 and Xero appear capable of doing that through several revenue streams.
I would be happy to buy either share in August with the intention of holding for many years.
